NACS Supports Small Business Expensing Bill

Legislation would permanently extend small business expensing for equipment and property outlined in the federal tax code.

June 11, 2014

WASHINGTON – To help small businesses grow and create jobs, NACS signed on to a letter to members of Congress in support of H.R. 4457, America’s Small Business Tax Relief Act.

Authored by U.S. Reps. Pat Tiberi (R-OH) and Ron Kind (D-WI), the bill would permanently extend small business expensing for equipment and property outlined in Section 179 of the tax code, which allows small business owners to immediately deduct the cost of investments in property, equipment and computer software, rather than depreciating such costs over time.

According to Tiberi, his legislation would create stability, certainty and simplicity for businesses by making permanent the $500,000 maximum expensing limit, rather than the lower current law limit of $25,000, which has raised and dropped numerous times over the years.

“Making Section 179 permanent at the $500,000 level would reduce compliance costs for small businesses, reduce the cost of capital and improve cash flow,” said Tiberi. “This would allow small businesses to invest in their businesses, expand and create jobs. Continuously allowing this provision to expire, like others that we have continuously and temporarily extended, makes it difficult for small businesses to plan and adds confusion and complexity.”

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